Labor market will be the 'focus' of Fed rate cuts: Economist

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The S&P Global US Services PMI (Purchasing Managers' Index) came in weaker-than-expected for March, with a reading of 51.7. S&P Global Market Intelligence...

The S&P Global US Services PMI came in weaker-than-expected for March, with a reading of 51.7. S&P Global Market Intelligence Chief Business Economist and Executive Director Chris Williamson joins Yahoo Finance Live to discuss the potential implications of this data onWilliamson states that recent inflation data points indicate 2024's first quarter experienced"robust growth.

So what you've got here is this persistent wage pressures with this tight labor market. Just look at those ISM data. You've got very strong new orders of growth and activity growth, but falling employment. This is because firms just can't get those staff, so they're having to pay them more. So that's going to really make for an interesting discussion as to whether June is the month where we'll see the first cut. We still think that's on. We still think the headline numbers are going to calmed down sufficiently to generate that. And then hopefully, by then, the labor market will be starting to cool, the wage data in particular, as those headline inflation numbers bring down the wage bargaining power for new pay deals.

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